updated 10:40 am EST, Thu December 6, 2007
Report: Apple needs NBC
Apple needs to work hard towards getting NBC videos back on iTunes, argues a recent report by Forrester Research. Firm analyst James McQuivey claims that when NBC videos dropped from iTunes this past weekend, he warned Apple executives that there was too much at stake. "Don't let the Macgeeks posting angry blogs against NBC fool you," McQuivey's report reads, "The loser here is Apple, which relies on NBC Universal to deliver 30 [percent] of video download sales. Any supposed backlash against NBC will not materialize because NBC has made its content available, for free, on NBC.com and six other major portals sites."
Among those portals is Hulu, which the network recently launched in cooperation with Fox owners News Corporation. Rather than pay for videos, visitors must simply wait through unskippable advertising.
NBC Universal CEO Jeff Zucker has said that he is willing to do business with Apple again, but an NBC spokeswoman notes that no progress is being made. "We're always open to dialogue, but right now there are no active discussions," she explains. The origins of the conflict lay in pricing: while Apple charges low, frequently inflexible amounts for shows and movies, NBC wanted to experiment with bundles, and/or higher prices for premium content.